The following condensed income statements of the jackson holding company are presented for the two years ended december 31, 2018 and 2017: 2018 2017sales $ 15,000,000 $ 9,600,000cost of goods sold 9,200,000 6,000,000gross profit 5,800,000 3,600,000operating expenses 3,200,000 2,600,000operating income 2,600,000 1,000,000gain on sale of division 600,000 —3,200,000 1,000,000income tax expense 1,280,000 400,000net income $ 1,920,000 $ 600,000on october 15, 2018, jackson entered into a tentative agreement to sell the assets of one of its divisions. the division qualifies as a component of an entity as defined by gaap. the division was sold on december 31, 2018, for $5,000,000. book value of the division's assets was $4,400,000. the division's contribution to jackson's operating income before-tax for each year was as follows: 2018 $400,0002017 $300,000assume an income tax rate of 40%.required: (in each case, net any gain or loss on sale of division with annual income or loss from the division and show the tax effect on a separate line.)
1. prepare revised income statements according to generally accepted accounting principles, beginning with income from continuing operations before income taxes. ignore eps disclosures.
2. assume that by december 31, 2018, the division had not yet been sold but was considered held for sale. the fair value of the division's assets on december 31 was $5,000,000. prepare revised income statements according to generally accepted accounting principles, beginning with income from continuing operations before income taxes. ignore eps disclosures.

3. assume that by december 31, 2018, the division had not yet been sold but was considered held for sale. the fair value of the division's assets on december 31 was $3,900,000. prepare revised income statements according to generally accepted accounting principles, beginning with income from continuing operations before income taxes. ignore eps disclosures.

Required information problem 15-1a production costs computed and recorded; reports prepared lo c2, p1, p2, p3, p4 [the following information applies to the questions displayed below. marcelino co.'s march 31 inventory of raw materials is $84,000. raw materials purchases in april are $540,000, and factory payroll cost in april is $364,000. overhead costs incurred in april are: indirect materials, $59,000; indirect labor, $26,000; factory rent, $38,000; factory utilities, $19,000; and factory equipment depreciation, $58,000. the predetermined overhead rate is 50% of direct labor cost. job 306 is sold for $670,000 cash in april. costs of the three jobs worked on in april follow. job 306 job 307 job 308 balances on march 31 direct materials $30,000 $36,000 direct labor 25,000 14,000 applied overhead 12,500 7,000 costs during april direct materials 133,000 210,000 $100,000 direct labor 105,000 150,000 101,000 applied overhead ? ? ? status on april 30 finished (sold) finished in process (unsold) required: 1. determine the total of each production cost incurred for april (direct labor, direct materials, and applied overhead), and the total cost assigned to each job (including the balances from march 31). a-materials purchases (on credit). b-direct materials used in production. c-direct labor paid and assigned to work in process inventory. d-indirect labor paid and assigned to factory overhead. e-overhead costs applied to work in process inventory. f-actual overhead costs incurred, including indirect materials. (factory rent and utilities are paid in cash.) g-transfer of jobs 306 and 307 to finished goods inventory. h-cost of goods sold for job 306. i-revenue from the sale of job 306. j-assignment of any underapplied or overapplied overhead to the cost of goods sold account. (the amount is not material.) 2. prepare journal entries for the month of april to record the above transactions. 3. prepare a schedule of cost of goods manufactured. 4.1 compute gross profit for april. 4.2 show how to present the inventories on the april 30 balance sheet.